FBI Warns of Increase in Extortion Email Schemes

The Federal Bureau of Investigation (FBI) has issued a new security alert warning of a new wave of extortion email schemes. The alert was issued after its Internet Crime Complaint Center (IC3) started receiving multiple reports from individuals who had been threatened with the exposure of their sensitive data.

Cybercriminals are quick to respond to large-scale data breaches and use the fear surrounding the attacks to scam individuals into paying ransoms, clicking on links to malicious websites, or opening infected email attachments. In recent weeks, the Internet has been awash with news reports of major data breaches that have hit networking sites and a number of popular Internet platforms.

Major data breaches affected LinkedIn, MySpace, and Tumblr, and while the stolen data are old, hundreds of millions of individuals have been affected.

These cyberattacks occurred in 2012 and 2013, although the data stolen in the attacks have just been listed for sale online. These major data breaches had gone undiscovered until recently.

Extortion Email Schemes Threaten Exposure of Sensitive Data

Due to the volume of logins that were exposed in these attacks and the popularity of the sites, many individuals may be concerned that their login credentials may have been obtained by hackers. Cybercriminals are taking advantage of this fear and are sending out huge volumes of spam emails advising individuals that their sensitive data have been obtained.

In the emails, individuals are told that their name, address, telephone number, credit card details, and other highly sensitive data are being held and that they will be distributed to friends and family if a ransom is not paid. The attackers warn their victims that access to social media accounts has been gained and that the attackers have details of all of the victim’s social media contacts.

The scammers are also threatening to email and mail out details of credit card transactions and internet activity to friends, family, and employers, suggesting that the payment to prevent this from happening will be much lower than the cost of a divorce, and low in comparison to the affect it will have on relationships with friends and on social standing.

To stop the distribution of these data, victims are required to pay the attackers anywhere from 2 to 5 Bitcoin – Between $250 and $1,200. A Bitcoin address is sent in the email which the victims must use. This ensures the transaction remains anonymous.

After analyzing the extortion email schemes, the FBI has concluded that the attacks are the work of multiple individuals. The FBI has advised against paying the ransoms as this will only ensure that this criminal activity continues. Paying a ransom is no guarantee that further demands will not be received.

Any person receiving an email that they believe to be an extortion email scheme should contact their local FBI office and send a copy of the email with the subject “extortion E-mail scheme,” along with details of the Bitcoin address where payment has been asked to be sent.

Extortion email schemes are often sent out randomly in spam email; however, responding to an email will alert the attacker that the email account is active and is being checked. The best course of action is to ignore the email, to log into social media accounts and change all passwords, and to carefully monitor bank accounts and credit card statements. The FBI also advises individuals to ensure social media accounts are configured with the highest level of privacy settings and to be extremely careful about sharing any sensitive data online.